BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
British Columbia Hydro and Power Authority
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
(in millions) Generation Transmission Distribution
Land &
Builidings
Equipment &
Other
Unfinished
Construction Total
Cost
Balance at March 31, 2014 $ 6,516 $ 4,552 $ 5,057 $ 504 $ 661 $ 2,940 $ 20,230
Net additions (transfers) 479 1,096 349 77 85 (9) 2,077
Disposals and retirements (6) (8) (28) (3) (11) (26) (82)
Balance at March 31, 2015 6,989 5,640 5,378 578 735 2,905 22,225
Net additions (transfers) 535 1,465 418 72 165 (487) 2,168
Disposals and retirements (6) (34) (31) - (34) (8) (113)
Balance at March 31, 2016 $ 7,518 $ 7,071 $ 5,765 $ 650 $ 866 $ 2,410 $ 24,280
Accumulated Depreciation
Balance at March 31, 2014 $ (645) $ (411) $ (433) $ (51) $ (165) $ - $ (1,705)
Depreciation expense (198) (161) (165) (24) (64) - (612)
Disposals and retirements 3 6 6 1 9 - 25
Balance at March 31, 2015 (840) (566) (592) (74) (220) - (2,292)
Depreciation expense (211) (177) (171) (23) (72) - (654)
Disposals and retirements 3 8 8 - 32 - 51
Balance at March 31, 2016 $ (1,048) $ (735) $ (755) $ (97) $ (260) $ - $ (2,895)
Net carrying amounts
At March 31, 2015 $ 6,149 $ 5,074 $ 4,786 $ 504 $ 515 $ 2,905 $ 19,933
At March 31, 2016 $ 6,470 $ 6,336 $ 5,010 $ 553 $ 606 $ 2,410 $ 21,385
(i) The Company includes its one-third interest in Waneta with a net book value of $715 million (2015
- $735 million) in Generation assets. Depreciation expense on the Waneta asset for the year ended
March 31, 2016 was $20 million (2015 - $20 million).
(ii) Included within Distribution assets are the Company’s portion of utility poles with a net book value
of $911 million (2015 - $842 million) that are jointly owned with a third party. Depreciation
expense on jointly owned utility poles for the year ended March 31, 2016 was $23 million (2015 -
$21 million).
(iii)The Company received government grants arising from the Columbia River Treaty related to three
dams built by the Company in the mid-1960s to regulate the flow of the Columbia River. The
grants were made to assist in financing the construction of the dams. The grants were deducted
from the carrying amount of the related dams. In addition, the Company received government
grants for the construction of a new transmission line and has deducted the grants received from the
cost of the asset. Government grants received in fiscal 2016 were $13 million (2015 - $nil).
(iv) The Company has contractual commitments to spend $3,710 million on major property, plant and
equipment projects (individual projects greater than $50 million) as at March 31, 2016.
Leased assets
Property, plant and equipment under finance leases of $388 million (2015 - $388 million), net of
accumulated amortization of $186 million (2015 - $173 million), are included in the total amount of
property, plant and equipment above.